Knoxville Transportation Authority approves KAT recommendation to transition to cashless ticket or exact change for bus fares

The Knoxville Transportation Authority (KTA) has approved the recommendation from Knoxville Area Transit (KAT) to transition to cashless ticket payment methods or exact change only for bus fares. The transition aims to enhance the overall experience for customers while improving operational efficiency for KAT. 

“The newly launched katpay fare payment system ensures passengers pay the lowest fare possible, making transit more affordable and accessible,” said city of Knoxville Director of Transit Isaac Thorne. “With the approval to move to a mostly cashless system, we take another step forward in enhancing the overall travel experience for our riders.” 

KAT launched katpay on Oct. 23, 2024, which uses fare capping. The fare payment system places daily and monthly limits on fares. KTA notes passengers will never pay more than $2 per day or $30 per 30-day period and for those who qualify for discounted fare, the limits are $1 per day or $15 per 30-day period. katpay also provides passengers the flexibility to manage their fares through a mobile app or reloadable card.  

According to KTA, riders who prefer to use cash onboard will still have the option to do so and the cash fare is $1 per ride ($0.50 for discounted fare). 

Key benefits of this transition include: 

• Expedited boarding: Streamlined processes will make it quicker and more efficient. 
• Fare capping implementation: KTA notes fare capping saves customers money by tracking usage and stopping charges when the daily or monthly fare limit is reached. 
• Flexible payment options: Passengers can choose between using a mobile account or a reloadable fare card, with multiple avenues available for adding value to their accounts with cash or credit/debit cards. 
• Increased operational efficiency: KTA says the transition will lead to reduced maintenance and labor costs associated with fareboxes and cash handling. 
• Enhanced flexibility: KTA says the move opens the possibility for KAT to explore rear-door boarding, further improving efficiency and passenger flow.